Odfjell re-entered the gas carrier market in 2012 by purchasing two 9,000 cbm LPG/Ethylene carriers. In 2014, we finalised a joint venture agreement with Breakwater Capital and Oak Hill Advisors to form a liquefied petroleum gas and ethylene shipping joint venture named Odfjell Gas AS.

In 2014, we also exercised options for four 22,000 cbm LPG/Ethylene carriers at Nantong Sinopacific Offshore & Engineering Co. Ltd. in China, together with the orders for four 17,000 cbm units that we placed at the same yard in 2013. In total, eight LPG/Ethylene carriers were scheduled for delivery from 2016 to 2017.

Over the last two years, we have been facing substantial delays of the ordered gas vessels, and in December 2016, four out of eight newbuilding contracts were cancelled. It is probable that the remaining vessels will be cancelled as soon as we can do this in accordance with the contracts.

All instalments, including accrued interests on cancelled contracts, have been repaid. Instalments paid on the remaining orders are secured by refund guarantees from reputable financial institutions.

Based on the challenges with the newbuilding programme, our ambition is to exit the gas segment when the timing is right.